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01.07.2010
Credit-Rating: Banking Sector – Recovery Under High Risks
Credit-Rating has today published a survey of Ukraine’s banking system in 1Q2010. The survey features assessment of the banking sector, including its financial indicators, operating environment and regulations, as well as major threats and prospects.
Credit-Rating notes retention of positive trends in banks’ resources and enhanced liquidity of the banking sector, which may contribute to faster recovery of the system and to increased lending activities in future. Another positive factor is stabilization of credit and currency market, and improved sector’s capacity for neutralizing potential losses with capital injections.
At the same time, due to high credit risks, a portion of banks’ recourses shifted to the state-issued debt securities. The lending to households has been remaining low due to unavailability of hedging currency-related risks by major players of this segment, i.e. banks with western capital. Despite of the rising number of banks that perform lending in the past quarter, the agency does not expect a considerable growth of lending activities due to absence of effective demand from borrowers.
The development of the banking system in the course of the year will be contingent upon many factors, to name a few are the state of economy’s real sector, regulatory environment, distribution of banks’ accumulated resources, creditors’ confidence in banking institutions, successfulness of actions aimed at improvement of asset quality. The country’s currency and credit policy will also have a significant impact on the banking sector.
Survey of Ukraine’s Banking System for 1Q2010 (rus)
Credit-Rating agency has operated in the Ukrainian market since 2001 being committed to assignment of the national scale ratings. The agency has assigned 177 credit ratings in the financial sector and 88 bank deposit ratings. As at June 1, 2010 the agency’s list of ratings includes 87 credit ratings in the financial sector and 54 bank deposit ratings.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and
analytic department
Sergey Rozumyak +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
